VinFast's Investment Hurdles: Tamil Nadu EV Dreams Hit a Speed Bump

Vietnam's domestic automotive giant VinFast has hit a roadblock with its plans to capitalize on India's Scheme to Promote Manufacturing of Electric Passenger Cars. A USD 2 billion investment in Tamil Nadu won't qualify under the scheme due to conditionalities tied to approval timing.

Officials clarified that applications will be accepted for 120 days under the new scheme, and investments must be capitalized post-approval to enjoy benefits. VinFast is now required to invest another Rs 4,150 crore to meet scheme criteria.

Though facing hurdles, VinFast is keen to launch its VF7 and VF6 models in India by the festive season this year, hoping to scale its annual production to 150,000 EVs targeting Middle East and African exports.

(With inputs from agencies.)